Energy UK responds to Ofgem’s Price Cap announcement

In response to Ofgem’s announcement on the price cap, Energy UK’s Chief Executive, Emma Pinchbeck, said:

“Customers will be shielded from paying the full amount announced today by Ofgem as the Government’s Energy Price Guarantee (EPG) will continue to cap energy bills until March 2024.

“However, from April 2023 the EPG is expected to rise to £3,000/year – £500 higher than it is now – which combined with the end of the separate monthly rebate payments, will mean most people’s bills will rise significantly.

“Falling wholesale costs means the EPG has cost the Government a lot less than had been anticipated so we, alongside many charities and consumer groups, are urging them to use this surplus to hold the EPG at £2,500 – and to announce that quickly so it can be incorporated in customer bills in time for April.

“That the Ofgem cap has decreased so much does give some cause for optimism that if the pattern continues, bills will fall later this year and we will begin to see cheaper, fixed deals back in a functioning, competitive market.

“In the meantime energy suppliers continue to provide a range of extra support for their customers, including contributing millions of pounds to additional funds, and hiring and training staff to identify and provide extra care for vulnerable customers.”